Schlumberger to wind down Iran operations this year

January 31, 2013|Reuters

Jan 31 (Reuters) - Schlumberger Ltd, the world'slargest oilfield services company, said on Thursday it wouldwind down operations in Iran this year after booking $208million in net income there in 2012.

While the company did not go into specifics, the decisioncomes as it faces a previously announced U.S. grand jury andregulatory probe of its activities in Iran, Syria, North Sudanand Cuba, which are all subject to government sanctions orrestrictions.

Schlumberger said it had not bid on any new Iranian oilfieldwork since March 2009, though some non-U.S. affiliates had beendoing work for the National Iranian Oil Co or its affiliates.Revenue in 2012 from this work totaled $418 million.

"Schlumberger intends to discontinue such activity in Iranin 2013 and is currently winding down its operations there," thecompany said in its annual report, released on Thursday.

Smith International, shortly before being taken over bySchlumberger, announced in 2010 it was actively pursuing thetermination of all activities in Iran and Sudan because the U.S.government had imposed economic sanctions or other restrictions.

In the fourth quarter, Schlumberger recorded revenuerelating to the Iran activity of $92 million and net income of$48 million. The company's overall fourth-quarter net income was$1.37 billion, on revenue of $11.17 billion.